McDonald Campaign Gets Reprieve Pending Judge’s Ruling

George McDonald poses for a portrait in the backyard of his Upper East Side home.

New York City Republican mayoral candidate George McDonald may raise money up to limits set by state law, but he won’t be permitted to spend any portion of those contributions that are in excess of city limits, according to a temporary agreement reached in court Monday.

Last month, McDonald filed a lawsuit to prevent the City Campaign Finance Board from taking enforcement action against his campaign for accepting contributions in excess of city limits and for entering into a loan that is prohibited by city law.

The lawsuit alleges the city doesn’t have the authority to require candidates who aren’t accepting public matching funds, such as McDonald, to abide by city laws that strictly limit donations and prohibit contributions or loans from certain sources, such as corporations. Mr. McDonald maintains that he must instead adhere to more lenient limits and regulations set by state law.

The city maintains that all candidates, whether they accept matching funds or not, must abide by city law.

On Monday, Judge Kathryn Freed heard arguments in the case but didn’t issue a ruling.

Lawyers for the city said Monday’s agreement preserves the “status quo.” But the McDonald campaign said the agreement gives the candidate some political cover because it specifically allows him, pending the judge’s ruling, to raise money above the city limits.

A spokesman for the Campaign Finance Board said, “We believe the court will uphold the law.”